Minerva Convert Expected in July

Brazilian beef producer Minerva is expecting to price its BRL300m ($190m) domestic convertible bond on or around July 10. The preliminary prospectus had originally scheduled pricing on Wednesday. The 2015 bond is expected to pay a maximum of 100% of the DI rate, and be convertible at a price of BRL6.65-BRL8.85. Both the interest rate and the conversion price are to be determined during the bookbuilding process. Proceeds are to repay a BRL220m 2013 loan from Bradesco, which costs 119% of DI, and for working capital. Minerva is rated BBB minus on a national scale. S&P raised its outlook on the company to positive from stable earlier this week, citing Minerva’s improving capital structure and reduction of short-term refinancing risks. Goldman Sachs, Deutsche Bank and Banco do Brasil are managing the sale.